PURCHASING A BUSINESS

Before deciding to buy a business, you should consider the following matters:-

1. How long has it existed? Who founded it? How many owners has it had? Why have others sold out?
2. What is the profit record? Is profit increasing or decreasing? What are the true reasons for the increase or the decrease?
3. What is the condition of the stock? Are the goods fresh and new, or obsolete, soiled and deteriorated?
4. Is the equipment in good condition? Who owns it? Are there liens against any of it? How does it compare with that of the competition?
5. How long does the lease run? Is it a satisfactory lease? What are its conditions? Can it be renewed?
6. Are there dependable sources of supply? Are any franchise or other special arrangements expiring soon?
7. What about competition, present and future? Are new competitions or substitute materials or methods visible on the horizon?
8. How about the area surrounding it? Are there new shopping centres or any buildings to be torn down? Are traffic routes or parking regulations likely to change.
9. Does the present owner have family, religious, social, or political connections that have been important to its success'?
10. Why does the present owner want to sell? Where will he or she go?
 

 

There are six major reasons for owning your own business:

Independence
The opportunity to be your own boss and make your own decisions.

Security
The freedom from fear of being made redundant through companies failing, downsizing, or merging. Owning your own business is a chance to control your own future.

Challenge
The opportunity to develop a business, make improvements and develop a wide range of personal skills.

Profits
The prime purpose of a business is survival, and it must make a reasonable profit so the owner can live comfortably and a have a surplus to invest in growth of the firm.

Lifestyle
Many people buy country or beach stores because of the lifestyle, or such businesses as cafes sports stores because of their personal interests.

Employment
For some, buying a business provides a job and income, and can also provide for the family.
Should you require any further information do not hesitate to contact my offices.

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